Top Russian clothing brand eyes Bangladesh for production shift

Russia’s largest clothing manufacturer, Gloria Jeans, is planning to relocate part of its production capacity abroad due to a labour shortage in the country.

Gloria Jeans, which primarily produces clothing and footwear, is considering Bangladesh as one of the potential destinations for its production. 

According to the Ukrainian online newspaper Ukrainska Pravda, citing Russian media outlet Kommersant, the relocation will mainly impact factories in Russia’s Rostov region. A sewing factory in Salsk has already been shut down, with workers offered opportunities to relocate to other factories. 

Gloria Jeans currently operates 18 factories across Russia. 

Reports indicate that the company is considering Vietnam, Bangladesh, and Uzbekistan as possible locations for production.

Uzbekistan’s domestic cotton production ensures a steady supply of raw materials, and all three countries offer high-quality industrial facilities.  There will barely be any problem regarding raw material availability and production costs. 

Historically, Russian clothing manufacturers have favoured China for production. However, rising labour costs in China have made it less attractive compared to countries like Bangladesh and Uzbekistan. 

The Russian clothing industry’s skilled labour shortage is worsening, with the third quarter of 2024 seeing an even greater gap than before. Alongside the labour crisis, the quality of raw materials and accessories produced domestically in Russia is poor, forcing manufacturers to source from other countries. 

Economic sanctions imposed by Western nations have further complicated matters for Russian businesses. The sanctions make it difficult for manufacturers to import sewing equipment, as payments for these imports cannot be processed.